PriceSmart Announces Joint Venture Agreement in Jamaica

SAN DIEGO/PRNewswire/ -- PriceSmart, Inc. (Nasdaq: PSMT) (http://www.pricesmart.com) announced today that the Company has entered into a joint venture agreement with investors in Jamaica to form a new company of which PriceSmart will be the majority owner. It is anticipated that the new company will build two PriceSmart membership-shopping warehouses in Jamaica with the first of these scheduled to be operational by summer, 2002.

The lead local investor in this venture is the Myers family. The family owns and operates Restaurants of Jamaica Limited, which is the authorized franchisee in Jamaica for KFC as well as Pizza Hut.

The franchise, which began operation in mid-1975, has expanded to 21 restaurants employing approximately 1,100 persons island-wide.

Through the company, the Myers family also provides major support for programs in education, sports and other projects that help ensure development of the country's human resources.

In addition to the Myers family, several investors in other PriceSmart ventures are also investing in this project in Jamaica. Mark Myers, CEO of Restaurants of Jamaica Limited, is convinced that Jamaica has strong opportunities for growth. "We hail the joint venture with PriceSmart, Inc., believing that Jamaicans will welcome the quality of the merchandise and the significant value PriceSmart will introduce here," he said.

Gil Partida, President and CEO of PriceSmart, Inc. stated "We are very pleased to continue our expansion in the Caribbean by now including Jamaica, a market we believe will be very receptive to our concept. We are also pleased with the additional synergies we will experience in buying, distribution, expenses and the benefits of regional sourcing opportunities that come from Caribbean trade agreements."

"We look forward to serving the people of Jamaica and to working with the Myers Group," Partida added. PriceSmart plans to open its first warehouse in Barbados this month and to open six new warehouses in fiscal 2002.

PriceSmart now operates 21 membership-shopping warehouses in Central America, the Caribbean and Asia: Panama (4), Costa Rica (3), Dominican Republic (3), Guatemala (3), El Salvador (2), Honduras (2), Aruba (1), Philippines (1), Trinidad & Tobago (1), and U.S. Virgin Islands (1). PriceSmart also licenses six warehouses in China and one warehouse in Saipan, Micronesia.

PriceSmart, headquartered in San Diego, is a volume-driven merchandise and services provider, delivering quality, value and low prices to the rapidly emerging consumer class in Latin America, the Caribbean and Asia.

This press release contains forward-looking statements that are subject to risks and uncertainties that might cause actual results to differ from those foreseen, including the following risks: our financial performance is dependent on international operations; the success of our business requires effective assistance from local business people with whom we have established strategic relationships; any failure by us to manage our growth could adversely affect our business; we face significant competition; we may encounter difficulties in the shipment of goods to our warehouses; we are exposed to weather and other risks associated with our operations in Central America and the Caribbean; declines in the economies of the countries in which we operate our warehouse stores would harm our business; the loss of key personnel could harm our business; and we are subject to volatility in foreign currency exchange; as well as the other risks detailed in the Company's SEC reports, including the Company's Form 10-K filed pursuant to the Securities and Exchange Act of 1934 on November 29, 2000.

For further information, please contact Gil Partida, President and Chief Executive Officer, 858-581-4912, or Ron deHarte, Senior Vice President, Marketing, 858-581-5356, both of PriceSmart Inc.

SOURCE: PriceSmart, Inc., 08/13/2001
CONTACT: Gil Partida, President and Chief Executive Officer, +1-858-581-4912,
or Ron deHarte, Senior Vice President, Marketing, +1-858-581-5356, both of PriceSmart Inc.
Web site: http://www.pricesmart.com
(PSMT)